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An arbitration agreement is a contract between parties to resolve disputes outside of the national court system, instead utilizing an independent tribunal. For the agreement to be valid and effective, several conditions must be met: it must be in writing; it should pertain to current or future disputes; the disputes must arise from a legal relationship, whether contractual or not; the parties involved must have the legal capacity and consent to enter into contracts; the subject matter must be arbitrable; and the terms of the arbitration agreement must be clear and mutual. By agreeing to arbitration, parties relinquish their right to court resolutions.
